Bankruptcy is both a relief and a stressful situation. However, when your bankruptcy is over, you can begin to create a better financial situation while all those harassing bill collector phone calls stop. The article below discusses some tips to make filing for bankruptcy less painful.
Honesty is of utmost importance during your filing, even though it may be tempting to “pad” your answers a little. Don’t hide income or assets from your lawyer or the bankruptcy trustee or you may find yourself in legal trouble.
You should not use your IRA or 401(k) unless there is nothing else you can do. If you do have to dig into your savings, make sure that you save some to ensure that you are financially secure in the future.
Instead of relying on random selections from the phone book or Internet, try your hardest to find one with a personal recommendation. There are a number of companies who may take advantage of your situation, so you must ascertain that your attorney can be trusted.
Prior to putting in the bankruptcy paperwork, determine what assets are protected from seizure. To find an itemized list detailing assets exempt from bankruptcy, find the Bankruptcy Code. It is vital that you completely understand which assets are protected and which assets can be seized prior to filing bankruptcy. Failure to do this could cause some ugly surprises down the road when you discover that your valuables must be seized.
Learn the latest laws before you file bankruptcy. Bankruptcy law has changed substantially in recent years, and you need to be aware of any changes so your bankruptcy can be properly filed. Your state’s website will have up-to-date information that you need.
Filing for bankruptcy does not mean that you have to lose your home. Depending on whether the value of your home has decreased or if you have a second mortgage on the home, you may very well end up being able to keep your home. You may also want to check out the homestead exemption either way just in case.
If bankruptcy is an option for you, secure the services of an attorney. The topic of bankruptcy is a complicated one and it is important that you know all about it. Your lawyer will make sure that the filings are correct and help you navigate the complex process of filing for bankruptcy.
Be certain that bankruptcy really is your best option. It might be possible to consolidate some of your debts. It is not a quick and easy process of filing for bankruptcy. It will affect your access to credit for the future. This is why you explore your last resort.
Chapter 13
Consider Chapter 13 bankruptcy for your filing. If you posses a regular source when it comes to income, and you have less than $250,000 of unsecured debt, you could file using Chapter 13 bankruptcy. This type of bankruptcy protects your assets from seizure and lets you repay your credits over the course of a few years. This plan usually lasts from 3 to 5 years, after which, you will be discharged from all unsecured debt. Just know that missing one payment could cause your case to be dismissed.
Consider if Chapter 13 bankruptcy. If your total debt is under $250,000 and have a consistent income source, Chapter 13 may be right for you. This plan normally lasts from three to five years, your unsecured debt will be discharged. Keep in mind that missed payments will trigger dismissal of your whole case to get dismissed.
Don’t file for bankruptcy if you get is bigger than your debts. Bankruptcy might seem like a good way to get out of paying your bills, but your credit report will show the scar for the next ten years.
Filing bankruptcy under Chapter 13 means you can still get a loan for a car or a mortgage. However, it can be more difficult. You have to meet with your trustee to get approval for the new loan. When you meet with your trustee or financial adviser, make sure that you come up with a sound budget proposal. You also need to be prepared to answer questions about your need for the new item.
Bankruptcy can cause anxiety and a difficult time that always leads to lots of other physical and emotional issues. To avoid getting too stressed, find a highly qualified attorney. Do not choose your attorney based on cost. It is not be necessary to hire a lawyer of high quality. Make sure people in your referrals. You might want to visit a court hearing to see how an attorney handles his case.
Don’t take too long when trying to decide whether or not you want to file for bankruptcy. It might seem a little scary, but as you wait, you’ll just be waiting that much longer once you do ultimately file.
Do not use the word “shame”, if you go bankrupt. You may need to get credit counseling or simply learn how to balance your budget. Try not to give in to these feelings, as they are of no help to you and they can affect your emotional health. To best deal with filing for bankruptcy, look for the positives in the situation.
There are many pluses and minuses to filing bankruptcy. No matter why you are filing, good information is needed. The tips contained in this article will make filing for bankruptcy easier to handle. Use these tips smartly to make the best decision possible.